The Gap, Inc. shares are trading close to a major technical resistance, which, if broken, could yield new upside potential and an increase in volatility. This scenario can be anticipated. Investors have an opportunity to buy the stock and target the $ 43.
The company has strong fundamentals. More than 70% of listed companies have a lower mix of growth, profitability, debt and visibility criteria.
The company has solid fundamentals for a short-term investment strategy.
The company is one of the most undervalued, with an "enterprise value to sales" ratio at 0.76 for the 2022 fiscal year.
Over the last twelve months, the sales forecast has been frequently revised upwards.
Analysts remain confident with respect to the group's activity and, more often than not, have revised upwards their earnings per share estimates.
For the past year, analysts covering the stock have been revising their EPS expectations upwards in a significant manner.
Within the weekly time frame the stock shows a bullish technical configuration above the support level at 20.25 USD
The share is close to its long-term resistance in weekly data. Therefore, the potential should be limited. However, a further bullish movement when crossing this resistance will be a positive signal.
The company sustains low margins.
Prospects from analysts covering the stock are not consistent. Such dispersed sales estimates confirm the poor visibility into the group's activity.
ę MarketScreener.com 2021
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